Energy Transfer Partners announced Tuesday it will acquire certain interests in PennTex Midstream Partners for approximately $640 million.
In a statement, Energy Transfer said it will own 100 percent of PennTex’s general partner, with all of its incentive distribution rights, as well as 6.3 million common units and 30 million subordinated units of PennTex, which represents about 65 percect of the total limited partner interests in PennTex.
According to Energy Transfer, PennTex assets complement Energy Transfer’s existing midstream footprint in the northern Louisiana region and position the company for growth and value creation.
The transaction will be paid with Energy Transfer common units issued directly to sellers and cash. It is expected to close by the fourth quarter of 2017, according to Energy Transfer’s statement.
Energy Transfer Partners